Ukrainian Central Bank Accuses BitCapital of Illegal Lending Practices

The Ukrainian online service BitCapital, which issues loans in USDT stablecoins, has been accused of creating an illegal lending scheme. This was reported by the NBU.

The regulator received over 700 complaints from citizens regarding high interest rates, improper charges, aggressive debt collection practices, and lack of transparency in lending terms.

The National Bank’s investigation revealed that BitCapital formally provided loans in USDT but effectively issued loans in hryvnia, circumventing the law.

“Systemic violations were identified: exceeding maximum allowable interest rates, manipulating disclosure of the real cost of credit, misleading consumers about contract terms,” noted the NBU.

Until all legal requirements for financial market activities are met, the company is prohibited from operating in Ukraine.

“The virtual assets sector is in a formative state, creating potential risks for manipulation by unscrupulous market participants. The lack of comprehensive legal regulation leads to the emergence of dangerous schemes,” added representatives of the regulator.

The NBU has forwarded the investigation materials to the National Police and the BEB with a request to take measures to stop BitCapital’s illegal activities.

The regulator also identified several financial institutions collaborating with the service and intends to develop mechanisms to protect legitimate financial market participants from such “partnerships.”

Previously, the BEB, through the court, demanded the blocking of the cryptocurrency exchange Kuna on charges of tax evasion. The company’s founder, Mykhailo Chobanyan, decided to close the platform and cease commercial activities in Ukraine.

In September 2024, the NBU urged commercial banks to join forces for monitoring P2P transfers of clients to prevent fraud under the 150,000 hryvnia limits established from October 1.